The Institute of Internal Auditor’s Standards for the Professional Practice of Internal Auditing (the “Standards”) require a mandatory Internal Audit Quality Assurance Review to be conducted by a qualified, independent reviewer at least once in each five-year period.
Many leading internal audit professionals consider external assessments essential for ensuring the effectiveness of an internal audit function in providing assurance and consulting services to the Board, Senior Management and other interested parties and, more importantly, essential for assessing compliance with the professional Standards.
Quality assurance and improvement programs can lead to improved effectiveness and efficiency in internal audit activities in light of its charter, the expectations of the Board, the Senior Management and the Chief Audit Executive (“CAE”); can provide a road map for improving the performance of the CAE and staff; can assess compliance with the Standards and policies; and can help internal auditors to add value to their organizations.
At Mazars’ Governance, Risk and Internal Control (“GRIC”) unit, we have qualified consultants who are awarded with the Certificate of the Internal Quality Assessors/ Validator course and state-of-art quality assessment techniques and processes to perform a total diagnostic review of your current internal audit activities to assess:
- The objectivity and independency of the department’s reporting structure.
- The adequacy of scope of coverage, for instance, including evaluation of enterprise risk, organizational controls and governance process in audit plans to assure that audit activities add value to the organization.
- The effectiveness of leadership and team structure.
- The adequacy of resources and the appropriate mix of knowledge, experience and disciplines within staff, necessary to perform the audit function.
- The effectiveness of communication between the audit team, management and auditees.
- The effectiveness and adequacy of methodologies, approaches and tolls adopted in performing audit engagements.
- The effectiveness of quality assurance and improvement program.
- The adequacy of the engagement document management and retention process.
- The degree of the internal audit activity’s conformity to the Standards.